Latvia

Background:
After a brief period of independence between the two World Wars, Latvia was annexed by the USSR in 1940. It reestablished its independence in 1991 following the breakup of the Soviet Union. Although the last Russian troops left in 1994, the status of the Russian minority (some 30% of the population) remains of concern to Moscow. Latvia continues to revamp its economy for eventual integration into various Western European political and economic institutions.

Environment - current issues:
air and water pollution because of a lack of waste conversion equipment; Gulf of Riga and Daugava River heavily polluted; contamination of soil and groundwater with chemicals and petroleum products at military bases

Constitution:
the 1991 Constitutional Law which supplements the 1922 constitution, provides for basic rights and freedoms

Legal system:
based on civil law system

Suffrage:
18 years of age; universal for Latvian citizens

Executive branch:chief of state:
President Vaira VIKE-FREIBERGA (since 8 July 1999)
head of government:
Prime Minister Andris BERZINS (since 5 May 2000)
cabinet:
Council of Ministers nominated by the prime minister and appointed by the Parliament
elections:
president elected by Parliament for a four-year term (amended from a three-year term on 4 December 1997); election last held 17 June 1999 (next to be held by NA June 2003); prime minister appointed by the president
election results:
Vaira VIKE-FREIBERGA elected as a compromise candidate in second phase of balloting, second round (after five rounds in first phase failed); percent of parliamentary vote - Vaira VIKE-FREIBERGA 53%, Valdis BIRKAVS 20%, Ingrida UDRE 9%

Legislative branch:
unicameral Parliament or Saeima (100 seats; members are elected by direct popular vote to serve four-year terms - amended from three-year terms on 4 December 1997)
elections:
last held 3 October 1998 (next to be held NA October 2002)
election results:
percent of vote by party - People's Party 21%, LC 18%, TSP 14%, TB/LNNK 14%, Social Democrats 13%, New Party 8%; seats by party - People's Party 24, LC 21, TSP 16, TB/LNNK 17, Social Democrats 14, New Party 8

Economy - overview:
In 1999 Latvia, a transitional economy, experienced zero GDP growth as it continued to feel the impact of the August 1998 Russian financial crisis. Latvia officially joined the World Trade Organization (WTrO) in February 1999 - the first Baltic state to join - band was invited at the Helsinki EU Summit in December 1999 to begin accession talks in early 2000. Unemployment reached 9.6% in 1999, up from 9.2% in 1998 and 6.7% in 1997. Privatization of large state-owned utilities, especially the energy sector, faced more delays in 1999, but is expected to accelerate in the next two years. Latvia projects 3.5% GDP growth, 3% inflation, and a 2% fiscal deficit in 2000. Preparing for EU membership by 2003 remains a top foreign policy priority.

Telephone system:
inadequate but is being modernized to provide an international capability independent of the Moscow international switch; more facilities are being installed for individual use
domestic:
expansion underway in intercity trunk line connections, rural exchanges, and mobile systems; still many unsatisfied subscriber applications
international:
international connections are now available via cable and a satellite earth station at Riga, enabling direct connections for most calls (1998)

Illicit drugs:
transshipment point for opiates and cannabis from Central and Southwest Asia to Western Europe and Scandinavia and Latin American cocaine and some synthetics from Western Europe to CIS; limited production of illicit amphetamines, ephedrine, and ecstasy for export